The plan is to focus on the ‘power’ brands in an effort to boost growth and consolidate business, as consumer-focused companies struggle with slowing demand.
Arvind Fashions, which sells apparel brands including Arrow, Nautica, Gap and US Polo, is looking to shut down several loss-making stores of its value fashion retail brand Unlimited. The plan is to focus on the ‘power’ brands in an effort to boost growth and consolidate business, as consumer-focused companies struggle with slowing demand.
The Bengaluru-headquartered company, which holds the brands and retailing businesses of the $1.7-billion denim giant Arvind, has put exclusive outlet expansion of all other labels, except Calvin Klein, on hold, sources said. Going forward, the company, which was demerged from Arvind earlier this year, will focus on categories such as inner wear, kids’ wear and beauty to drive growth, said two people familiar with the development. An Arvind Fashions’ spokesperson did not reply to a questionnaire mailed to the company by TOI on July 22.
“Unlimited, Arvind’s value retail format brand with over 100 stores, is making losses due to a large number of under-performing outlets in North India. The brand plans to focus on South India and regions of Maharashtra to achieve break-even by FY20. Unlimited, which has private brands like Excalibur and Ruggers for men and women’s brands Karigiri, Cherokee, competes with Westside, Pantaloons, Max and FBB. Going forward, Arvind plans to focus on innerwear through US Polo, kids’ wear through US Polo Kids, Tommy Hilfiger, GAP and The Children’s Place (TCP),” a source said.
While US Polo remains one of Arvind Fashions’ most-valuable brands, the company will also focus on its other clothing brands such as Arrow, Flying Machine and Tommy Hilfiger. “Gap is turning around after the brand started sourcing locally for a large number of its products. With Sephora (beauty segment), which has both private labels and premium brands like Bobby Brown, MAC, Steve Madden, the company plans to foray into smaller cities. The beauty brand has immense potential,” said the source.
